ISLAMABAD – Pakistan and Japan signed debt suspension agreements amountingto $ 367 million under the G-20 Debt Service Suspension Initiative(Phase-I).

Noor Ahmed, Secretary, Economic Affairs Division and Kuninori Matsuda,Ambassador of Japan to Pakistan signed these agreements in Islamabad. Thesigning ceremony was witnessed by senior officials of Japanese Embassy.

In the wake of COVID-19, the G20 countries, together with the Paris Clubcreditors, announced a Debt Service Suspension Initiative (DSSI) to providemuch needed fiscal space to stressed countries in order to meet theirurgent economic and health needs.

The Government of Pakistan, taking advantage of this initiative, enteredinto negotiations with 21 creditor countries for debt suspension amountingto US$ 1.6 Billion under DSSI Phase-I (April – December, 2020). Pakistanwill repay the suspended amount in 4-years starting January, 2022.

On this occasion, Secretary, EAD reiterated his appreciation for the debtsuspension provided by Japanese Government.

He highlighted that Japan is the 2nd largest bilateral lender to Pakistan.He also thanked the Government of Japan for its generous support forfighting against COVID-19 pandemic. He lauded that Japan’s timely supporthelped Pakistan save lives & livelihoods of millions during the testingtimes.

He also acknowledged continued support of Japan for health, education,agriculture, infrastructure, disaster management and urban servicesincluding water supply, sanitation and waste management.

While speaking on the occasion, Ambassador Matsuda also reaffirmed Japanesesupport to Pakistan on issues of mutual interest. Japanese economicassistance has played and shall continue to play a vital role in thesocioeconomic uplift of Pakistan, he added. Both sides reiterated strongcommitment towards further expanding bilateral economic cooperation.